Key Highlights
- Raghav Chadha proposed an Asset Tokenization Bill to democratize access to high-value investments for India’s middle class.
- The proposal aims to make assets like real estate and infrastructure accessible via fractional digital ownership.
- This would provide instant liquidity and higher returns while eliminating traditional middlemen and high transaction costs.
In the Indian Parliament on Tuesday, Member of Parliament Raghav Chadha proposed the introduction of an “Asset Tokenization Bill,” aiming to change the middle-class investment habits for high-value assets. Through the use of blockchain technology, Chadha said the government “could make investment and asset holding as inclusive as digital payments have become since the rise of UPI.”
The MP emphasized that the law would enable the general public to own fractional shares of costly real estate and infrastructure projects, potentially offering better returns and security for the future.
The proposal on financial inclusion
In his speech, Raghav Chadha spoke about the limitations that are presently available for the middle class as investors. He said, “A middle-class person today, if they want to invest, has options like a bank savings account, mutual funds, or fixed deposits. Beyond that, there are few options; commercial buildings are too expensive, infrastructure projects are out of their reach, and private asset classes are meant for niche investments.”
“If you look at what an investment means for a middle-class person, for a typical family that wants to save for their children’s education or their children’s marriage, that means that their investment options are limited,” Raghav added.
To address this, Chadha introduced the concept of asset tokenization, which, according to him, is a “financial revolution that breaks down large, costly assets into smaller digital tokens, which can then be traded completely openly on a blockchain.”
He compared it to the stock market when he said, “Just as a common man can buy a share of a company and become a part owner and reap the benefits of appreciation and profit, asset tokenization will enable real-world assets like real estate projects, infra projects, commodities, and IPR to be split into small digital tokens.”
Benefits to the common man
Raghav Chadha listed various advantages for the Indian public, and the significance of minimizing the initial entry costs was emphasized. He likened this to the development of digital gold bullion, saying that buying a small volume of physical gold is not possible, but digital gold will enable people to start investing from an outlay of 500 rupees.
As per the MP, some of the main advantages of this legislation would include increased returns on investment as well as a secured retirement for the middle-class citizen. The legislation would also ensure instant liquidity for those assets, which are generally difficult to liquidate, such as real estate properties. This would be possible using the technology of blockchain, which will help remove the middlemen for the purchase of properties, such as real estate brokers, resulting in “registration hassles.”
Chadha also indicated that “mature global economies have already commenced the process of legalizing and regulating such financial instruments.” These are the examples given by Chadha of regulating such virtual currencies, such as the inclusion of “tokenization in the Securities Act of the United States SEC, Singapore’s ‘Project Guardian,’ the EU’s Markets in Crypto-Assets (MiCA) Regulation, and the UAE’s creation of the Virtual Asset Regulatory Authority (VARA).”
Sumit Gupta, co-founder of CoinDCX, which is one of India’s leading crypto exchanges, also noted that the country needs serious policy frameworks. “Sandbox regulations, tax clarity, investor protection that let blockchain-enabled tokenization unlock India’s illiquid wealth while keeping the ecosystem safe,” Sumit said.
India’s effort toward crypto regulation
India now ranks ninth globally in crypto transactional use, driven by a strong retail base and stablecoin adoption for remittances. Furthermore, the Gujarat National Law University (GNLU) has initiated national consultations with legal experts and industry stakeholders to draft a secure, evidence-based regulatory framework.
Industry leaders like Polygon’s Aishwary Gupta emphasize that while UPI dominates domestic retail payments, a compliant INR-backed stablecoin, such as Project ARC, is essential for unlocking programmable money and efficient cross-border flows. Together, these developments suggest that India is moving toward a pivotal phase where structured policy and financial tools could change it into a regulated, global digital finance hub.
The advantage of Indians in terms of cultural affinity is that they have a natural affinity for physical assets. This is because 70-80% of their overall wealth has traditionally been in the form of property and precious metals.
This is exactly what tokenization provides. Warning that without “bespoke legislation,” or what amounts to a “regulatory sandbox,” India can “lose out on global capital,” the MP said that by providing this clarity through legislation, global investments that now go to countries like Singapore, Hong Kong, or the US can now come to India.
During the concluding remarks, Chadha emphasized that tokenization is the single most important factor that makes investment and ownership possible for the common man. He asked the government to move forward at a fast clip to make India a leader in this revolutionary financial innovation of the 21st century.
Also Read: India Ranks Among Top Countries in Global Crypto Transactional Use
